Congress alleges Govt 'lying' over Oil Bond figures

Congress on Tuesday reiterated its demands that the benefit of reduced international crude oil prices should be passed on to the people and the rates of Petrol-Diesel-LPG gas be reduced accordingly, Petrol and Diesel should be brought under the GST and the Government should immediately roll back the excise duty hiked on Petrol and Diesel in last seven years.

New Delhi: Congress on Tuesday reiterated its demands that the benefit of reduced international crude oil prices should be passed on to the people and the rates of Petrol-Diesel-LPG gas be reduced accordingly, Petrol and Diesel should be brought under the GST and the Government should immediately roll back the excise duty hiked on Petrol and Diesel in last seven years.

Congress party accused the Central Government of "falsehood" over the recent remarks made by Union Finance Minister Nirmala Sitharaman over Oil Bonds. While addressing a press conference, Congress General Secretary Ajay Maken said, "Since 2014-15 the Modi Govt has spent Rs 73,440 Crore on servicing of Oil Bonds. Against this, they have collected Rs 22.34 lakh Crore through taxes on petroleum products."

He further added, "Spending on Servicing of Oil Bonds is just 3.2% of the tax collection from Petroleum Products; Real Reason is not Oil Bonds but Reduction in Subsidy by 12 times & Increase of Taxes by 3 times." Quoting the official figures, Maken claimed that in the year 2020-21, Tax on Petrol-Diesel was Rs 4,53,812 Crore which is three times more than that of the year 2013-14.

"BJP raised Central Taxes on Petrol & Diesel by Rs 23.87 & Rs 28.37/litre in 7 yrs. Modi Govt collected additional Rs 1,89,711 Crore every year. Modi Govt has extorted Rs 22,33,868 Crore by levying excise on Petrol-Diesel in last 7 years. Consistent Increase in the prices of LPG, CNG, PNG, Petrol and Diesel Exemplifies Modi Government’s Arrogance," he alleged.

He mentioned that on 5th March 2020, excise duty on Petrol and Diesel was increased by Rs.3 per litre which got increased by Rs.13 per litre and by Rs.10 per litre on the 5th of May 2020. Explaining why Government cannot lower the Excise on Petroleum Products, Maken claimed that because of lowering of Corporate Tax, the Government needs more money to match its spendings. The cost of lower corporate tax rates for the government is being borne by citizens in the form of higher petrol and diesel prices.

Speaking over the Oil Bonds, the Congress leader stated, "Since 2014-15 the Modi Government has spent Rs 73,440 crores on servicing of Oil Bonds. Against this, they have collected Rs 22,33,868 crores (22.34 lakh crores) through taxes on Petroleum products. This is a minuscule 3.2% of the total tax collection by Modi Government from Petroleum Products."

He added that in the current fiscal also, the Government has only a liability to pay Rs 20,000 crore in the form of bond repayment and interest on the outstanding oil bonds. At the present rates, the Government is expected to collect Rs 5,00,000 crores(Rs 5 lakh crores) from taxes on Petroleum Products, he claimed. "Moreover, the first Oil Bonds worth Rs 9,000 Crore were launched on 1st April 2002. The payments for these were to be made in 2009. UPA never cribbed, because servicing of Bonds is a minuscule part of the total revenue collected from the Petroleum Products," Maken asserted.